Some experts argue that Cairn India must concentrate on oil and gas production from its Rajasthan block instead of foraying into shale gas exploration in the area.
Experts argue that shale gas exploration is a technology-intensive area, which is at its infancy even in the United States.
Also, if and when viable discoveries are made, the explorer needs substantial quantity of water to tap successfully this shale oil or gas. Considering that water is scarce in Rajasthan, experts want Cairn India to shed its shale gas ambition in the area for the time being.
Experts want the company to get the gas and oil from Barmer and other potential areas, and leave the shale gas or oil issue for subsequent development, by which time technology may improve to reduce the dependence on water.
It may be recalled that earlier the company demanded the government to give it the right of first refusal when it comes to exploration of shale gas or oil in the Barmer oil fields where it is already fully entrenched and operative successfully.
The company has claimed that under the NELP (the New Exploration Licensing Policy), the block should be offered to it as it is carrying on the work there (in Barmer), instead of giving the opportunity to others, which may be hindrance in its work.
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